Court to hear N855m share fraud case against Keystone Bank Nov. 27

Justice Habeeb Abiru of a Lagos High Court, Ikeja has fixed November 27 for the trial of Keystone Bank (formerly Bank PHB), three officials, an Indian and his company, Nulec Industries Limited alleged to have defrauded a businessman, Sir Daniel Chukwudozie of N855 million.

They were arraigned on a two-count charge of conspiracy and obtaining money by false pretence by the Economic and Financial Crimes Commission (EFCC).

The defendants are Anayo Nwosu; Olajide Oshodi, Sunny Obazee, Bank PHB, Ashok Isran, an Indian who also has a Swiss citizenship, his company, Nulec Industries.

According to the EFCC, the six defendants allegedly defrauded Chukwudozie of Dozzy Oil of N855 million.

In his petition to the EFCC dated 1st March, 2012, signed on his behalf by his counsel, Mr P.I.N. Ikwueto, now before the court, Chukwudozie said he invested the huge sum in Nulec Industries Limited based on the assurances given by officials of the bank that the shares of the company will be listed on the floor of the Nigerian Stock Exchange, one month after private placement and at a price not below N5.

Chukwudozie said he later found that the private placement offer price was N2.85k and not N5 as claimed by the defendants.

He also alleged that he was actually hoodwinked into parting with the large sum of money.

He claimed that no Memorandum of Investment or any other information about the company was given to him when the transaction was made.

“On the strength of the assurances by the bank, our client invited and persuaded his associates and close family members to also invest in the private placement aforesaid.”

He said himself and other investors enlisted by him bought as much as 300 million units of shares valued at N855 million in Nulec.

Chukwudozie alleged that further investigations revealed that Nulec was indebted to the defunct Bank PHB to the tune of N130 million.

He said Nulec was similarly indebted to other banks, including FCMB, UBA, GTB, to the tune of N300 million.

According to him, the volume of indebtedness of Nulec was not disclosed to him at the commencement of the transaction.

He also alleged that the money raised from the public offer was wired overseas after Bank PHB deducted Nuclec’s indebtedness to the bank.

Chukwudozie said visits to the headquarters of Nulec were on a number occasions rebuffed by its officials.

Counsel to the 3rd defendant, Mr Uche Obi objected to the presence of a colleague, Mr Ugwunzor Adindu, saying he was not a counsel on record in the matter and that he should not be making comments as he lacked the standing to do so.

But Adindu in his submission claimed to be the counsel to the MD of Dozzy Oil, the businessman who was allegedly duped by the bank and some of its officials.